80.2K
Verified Solution
Link Copied!
Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31.
| Account Titles | Debit | Credit |
| Cash | $ | 38 | | | | |
| Accounts Receivable | | 9 | | | | |
| Prepaid Insurance | | 6 | | | | |
| Machinery | | 80 | | | | |
| Accumulated Depreciation | | | | $ | 0 | |
| Accounts Payable | | | | | 9 | |
| Contributed Capital | | | | | 76 | |
| Retained Earnings | | | | | 4 | |
| Sales Revenue | | | | | 80 | |
| Administrative Expenses | | 26 | | | | |
| Wages Expense | | 10 | | | | |
| | | | | | | |
| Totals | $ | 169 | | $ | 169 | |
| | | | | | | |
| |
Other data not yet recorded at December 31 are as follows:
- Insurance expired during the year, $5.
- Depreciation expense for the year, $4.
- Wages payable, $7.
- Income tax expense, $9.
Required: 1. Prepare the adjusting journal entries for the year ended December 31.
a) Insurance expired during the year, $5.
b)Depreciation expense for the year, $4.
c)Wages payable, $7.
d)Income tax expense, $9
2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31.
Answer & Explanation
Solved by verified expert
